Business of Law

Insurers Outraged at Law Firm's Suits to Collect Very Small Amounts of Money

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A Florida law firm doesn’t have many friends amongst insurance companies with a presence in Broward County.

That’s because LaBovick & LaBovick has been suing them. Since forming its own collection agency last summer, it has filed more than 1,200 such lawsuits in the Fort Lauderdale-based court, most of them seeking amounts under $50, reports the Palm Beach Post.

“We’ve been sued for $2.56, $1.89, $3.42. It’s a disgrace,” Richard Parrillo Sr. tells the newspaper. He is the founder and CEO of United Automobile Insurance Co., which has been named as a defendant in 38 such LaBovick lawsuits.

Worse, it isn’t the small change that the firm really wants, he contends: “They’re looking to shake us down for legal fees.”

LaBovick has, in effect, created its own client, insurers contend, by pointing Gulfstream MediGroup at low-dollar medical clinic collection cases that can nonetheless reap lucrative attorney’s fees.

Managing partner Brian LaBovick, who operates the small firm with his wife, makes no apologies for its practice focus.

“The thought that a low amount is an improper amount to bring a lawsuit is the same as saying that the government shouldn’t file criminal charges over petty theft,” he tells the newspaper.

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